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Aave<\/a> community members are pushing for a fee switch proposal after the DeFi protocol\u2019s annualized revenue reached new highs this week.<\/p>\n On June 2, Matthew Graham, a member of the Aave liquidity committee, reported<\/a> that the protocol was \u201caveraging just over $80 million in annual revenue from seven Aave v3 & v2 deployments\u201d across various blockchain networks, including Ethereum<\/a>.<\/p>\n Stani Kulechov<\/a>, the founder of Aave, corroborated this milestone, stating<\/a>:<\/p>\n \u201cAave DAO is now earning $115 million annualized. Let that sink in.\u201d<\/p>\n<\/blockquote>\n This high revenue is not unexpected, considering CryptoSlate<\/em> recently reported<\/a> that Aave was one of the few decentralized applications preferred by crypto users over traditional blockchain networks.<\/p>\n Consequently, the impressive earnings have reignited community calls<\/a> for a fee switch proposal. A fee switch allows a platform to toggle specific user fees on or off, potentially redistributing transaction-generated fees to platform participants. Notably, several DeFi protocols, including Uniswap<\/a>, are contemplating initiating an initiative<\/a> for their users.<\/p>\n Meanwhile, these calls come more than a month after Marc Zeller, founder of the Aave Chain Initiative, suggested that a fee switch proposal was in development. Zeller highlighted that the Aave DAO has a substantial profit margin, providing a financial cushion for the next five years.<\/p>\n According to Token Terminal data<\/a>, the amount of crypto deposited in Aave has exceeded $20 billion, a level not seen since the crash of Terra\u2019s UST algorithmic stablecoin in 2022.<\/p>\n Market experts said the protocol\u2019s growth shows that the DeFi sector was rapidly recovering from the lows of the 2022 bear market that led to the collapse of several centralized lenders like Celsius, Genesis, and others. Additionally, they said the increased liquidity reflects the growing investor interest in Ethereum, driven by the optimism surrounding the ETH exchange-traded fund (ETF) approvals.<\/a><\/p>\n According to DeFillama data, Aave is the largest crypto-lending platform in the industry, primarily based on the Ethereum network. The platform recently disclosed plans<\/a> to introduce several key initiatives, including launching Aave V4, a new visual identity, and expanded DeFi functionalities for its users.<\/p>\n\n
Deposits cross $20 billion.<\/h2>\n
Mentioned in this article<\/h6>\n